This proven program is for energy and electric power professionals who are looking for a comprehensive and clearly explained understanding of natural gas, oil and electricity financial instruments, the markets they trade in, and how these powerful tools can be used to manage risk and structure profitable transactions. A discussion of how the Blockchain, smart contracts and atomic swaps might effect the energy markets has been added to the program. Click here to register.

How "cash margining" is done with a futures exchange, its cash management impact and the role of the Clearinghouse.

What the differences are between a futures commission merchant ("FCM"), over-the-counter broker, trader, market-maker, power marketer and wholesale energy merchant.

What basis risk is, and how basis, spread, LMP and delivery risks can blow up your energy and electricity hedges.

Why Trigger Deals are so popular, and what the difference is between the financial and physical basis ("fin" and "phys").

How to structure profitable energy, electric power, and petroleum transactions without exposure to price risk; how to financially create synthetic energy assets; and how to financially turn one commodity into another.

How to make money by buying valuable energy options from your customers and suppliers, and how your company may be missing a significant financial opportunity.

Why "extendible" deals are so profitable, and how energy trading floors "trade around assets."

What the terms "Contango" and "Backwardation" mean.

Where to find the four different Master Sales & Purchase Agreement templates which contain the standard industry bilateral contract language for physical & financial natural gas and electric power transactions.

You Will Also Learn

What The “Master Energy Trading Equation” is, and why trading energy and electricity is different from the trading financial products and other commodities.

The many different types of energy and electricity trading, why traders specialize and the different ways energy traders can get an "edge" on the competition.

What the rationale, concepts and mechanics are for basis trading, spread trading and structured transactions.

The fundamentals of energy and electricity options, the implications of high energy price volatility, and why merchant energy and electric power assets are valuable Call options.

How to calculate annualized volatility, the fundamentals of pricing options and why the Black Scholes model may not work for pricing energy and electricity options.

The basics of the valuable put-call option parity equation, synthetic option positions and how to delta hedge.

The basics of the “value-at-risk” (“VaR”) calculation and why to be careful.

What Tolling Deals, asset optionality, and the petroleum industry's "Carry Trade" are, and how they work.

Why a merchant fossil fuel generating plant is a call option on the spot spark spread.

A simple rule that will optimize your daily decisions on whether to use or idle a merchant electric generator, storage facility or transportation asset.

How heat-rate-linked power transactions can effectively convert natural gas futures, options, and swaps into electric power financial instruments which can then be used to manage electricity risks or to structure profitable power deals. (Optional additional class material offered at 4:15 PM on Day 1.)

How electricity financial markets interact with the ISO Day-Ahead Energy Auction markets, and how these two separate worlds support each other. (Optional additional class material. offered at 4:15 PM on Day 1.)

Seminar Agenda

DAY ONE

Overview of the three different energy & electric power forward markets, terminology, the purposes served by these markets, price & spread hedgers and the basics of energy and electricity physical transactions.

The four different methods used to manage energy and electricity price, basis, spread, delivery, operational, and volumetric (intermittency) risks.

The dangers of liquidity risk, and when it can blow up a company.

What physically-settled energy futures contracts are; why only 1% of physical energy futures go to physical delivery and what the difference is between a physically-settled energy future contract and a physical forward contract.

How the CME and ICE futures exchanges are structured and the role of the CME and Ice Clear Clearinghouses.

How buyers and sellers use cash-settled futures contracts and swaps to hedge natural gas, oil and electricity price, basis, spread, and LMP risk.

How buyers and sellers can use cash-settled financial instruments to turn natural gas into virtual oil or virtual electricity (And vice-versa); Day Ahead LMP into Real Time LMP (And vice-versa); An average of daily prices into a fixed or monthly index price; and many other forms of “slicing & dicing.”

An overview of how the “ICE OTC” energy & electricity trading platform works.

What the differences are between ICE OTC, ICE Futures, CME Globex, CME Clearport Services CME Direct and The Nodal Exchange.

Where to find the four different Master Sales & Purchase Agreement templates which contain the standard industry bilateral contract language for physical & financial natural gas and electric power transactions.

How block-chain technology, “smart contracts” and “atomic swaps” may impact how energy transactions are done.

How basis & spread swaps work; and how these swaps relate to cash-settled futures contracts and ISO administered electricity FTRs, CRRs, and TCCs.

The dangers of energy & electricity delivery risk during high demand periods, and what to do about it (Plan “B”).

The difference between the financial and physical locational basis ("fin" and phys").

What a “trigger deal” is, and why it is economically and politically efficient.

Why so many energy industry buyers and sellers outsource the execution of their hedges and risk management solutions.

How the “Master Energy Hedging Equation” is a simple and powerful way to quickly understand many different types of energy transactions and to quickly convert one form of transaction into another.

How the “Master Energy Hedging Equation” underlies the structure of a firm’s energy trading books.

The basics of the “Value-at-Risk” (“VaR”) calculation, and why to be careful.

How heat-rate-linked power transactions can convert natural gas futures, options, and swaps into electric power financial instruments which can then be used to hedge electricity risks or to structure profitable power deals.

How electricity financial markets interact with the ISO Day-Ahead Energy Auction markets, and how these two separate worlds support each other.

John Adamiak is President and Founder of PGS Energy Training and an expert in energy derivatives and electric power markets. Mr. Adamiak is a well-known and highly effective seminar presenter who has over 20 years experience in the natural gas and electric power industries. His background includes 15 years as a seminar instructor, 9 years of energy transaction experience, and 6 years of strategic planning and venture capital activities. John's academic background includes an M.B.A. degree from Carnegie Mellon University.

Who Should Attend this Seminar

Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; and corporate planners. Types of companies that typically attend this program include energy producers and marketers; utilities; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Prerequisites and Advance Preparation

This fundamental level group live seminar has no prerequisites. No advance preparation is required before the seminar.

Program Level

Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level.

Delivery Method

Group-live.

Why choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS class today, and join the over 10,000 energy professionals who have already attended one of PGS's proven programs. View Past Seminar Attendees

Hotel and Seminar Information

This two-day seminar will be held at the hotels listed below or can be conducted on-site at your facilities. The seminar will start promptly at 8:00 AM and will finish at 5:00 PM on the first day. On the second day, the seminar will resume at 8:00 AM and will finish at 2:00 PM. The program includes continental breakfast, lunch and coffee breaks on the first day and a continental breakfast, snack and coffee breaks on the second day. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars.

Because of the diversity of hotels found in the area, PGS Energy Training will not be holding a block of sleeping rooms with one particular hotel. Should you need a list of local hotels in the area, please contact us at (440) 853-1038 and we can help you with your accommodations.

There is a courtesy block for a limited number of rooms for $195 plus taxes for a King size or Double bed room. Please call 1-800-942-7348 and ask for the "PGS Energy Training (Code:PGS)" discount. The cut off date is March 30, 2018. Rooms sell out so make your reservations early.

Call 713-621-8988 and ask for PGS Energy Training discount or the code "PGS" to get the discounted rate of $139.00 plus Tax for a Classic King room. The discount is good for the nights of 6/4/18 thru 6/7/17. Rooms sell out so make your reservation early.

Because of the diversity of hotels found in the area, PGS Energy Training will not be holding a block of sleeping rooms with one particular hotel. Should you need a list of local hotels in the area, please contact us at (440) 853-1038 and we can help you with your accommodations.

Because of the diversity of hotels found in the area, PGS Energy Training will not be holding a block of sleeping rooms with one particular hotel. Should you need a list of local hotels in the area, please contact us at (440) 853-1038 and we can help you with your accommodations.

There is a courtesy block for a limited number of rooms for $249 plus taxes for a King size or Double bed room. Please call 1-800-942-7348 and ask for the "PGS Energy Training (Code:PG8)" discount. The cut off date is July 20, 2018. Rooms sell out so make your reservations early.

Registration Fee and Discounts

Register Today!.
The price for this comprehensive
two-day
seminar is
$1,895 (USD).

Early Bird Special:

Seminar Date(s)

Cutoff Date

Additional Savings

New York - Apr 19 & 20

Mar 30, 2018

$100 per order

San Francisco - May 3 & 4

Apr 13, 2018

$100 per order

Houston - Jun 7 & 8

May 18, 2018

$100 per order

New York - Jun 21 & 22

Jun 1, 2018

$100 per order

Hilton Head Island - Aug 2 & 3

Jul 13, 2018

$100 per order

San Francisco - Aug 23 & 24

Aug 3, 2018

$100 per order

Register soon to get Early Bird pricing. A limited number of Early Bird seats are available.

Sign up for 4 or more classroom seats during the same month and all attendees will receive a 20% total discount.(If you plan to register 4 or more classroom seats for the same seminar, but want attendees to pay by separate credit cards, register one party now and mention this fact in the "Comments" section of the registration form. We will manually subtract the 20% discount from the first registrant's seminar fee and will call you to obtain the credit cards and registration information for your other attendees in order to give them their 20% discount. If applicable the Early Bird discount of either $200 or $100 will be divided evenly between all participants.)
Please call (440) 853-1038 for more information.

Special pricing is available for groups of 5 or more. Please call Janice Ohmura at (440) 853-1038.

Payment is due prior to the start of the seminar by Visa, Master Card, American Express, Diners Club, or corporate check.
Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made.
Please make checks payable to "PGS Energy Training" 26 Teal Lane · Hilton Head Island, SC 29926.
Cancellations can be made up to five (5) business days prior to the start of the seminar for a full refund.
No refunds will be made thereafter, but a one year full seminar credit will be given toward future workshops upon receipt of $175 which will used to help offset the non-refundable food, beverage, manual and other expenses incurred by PGS.
This one year seminar credit is good for any PGS Energy Training program except for seminars offered by PGS affiliate organizations.
Colleague substitutions may be made at any time.
If PGS needs to cancel a seminar due to instructor unavailability, lack of attendance or other unforeseen reason, you will be offered the choice of rescheduling for another seminar, a seminar credit, or a refund.
For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.

CPE Credits in Specialized Knowledge & Applications

This live group seminar is eligible for 13.5 CPE credits.
Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit.
One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity.
You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.
State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.
Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS telephone seminars are eligible for CPE credits only if seminar participants use the printed seminar slides - not the Internet posted slides.

PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits.
PGS Energy Training has determined that attending Energy/Electricity Hedging, Trading, Futures, Options & Derivatives qualifies for 13.5 GARP CPD credit hours.
If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd.